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The Outer Hebrides tops list of UK’s house price hotspots over the past five years, according to analysis of the latest figures from the Office of National Statistics.

The study by debt specialists IVA Advice found that the average price of a house there in February 2021 was £132,397, compared to £87,494 in February 2016, representing an increase of 51.32%. 

Despite that, the average house price in the Islands still among the 30 lowest price areas in the UK, and more than £100,000 lower than the UK average house cost. 

In second place was Newport in Wales, where the average price has jumped by 46.9% in comparison to five years ago. The average in February 2016 was £142,820, while in February this year it stood at £211,332.  

The UK’s property price hotspots over the past five years, by IVA Advice 

Rank 

Region 

Average house price, February 2021 

Increase compared to February 2016 

Outer Hebrides

£132,397.23 

51.32% 

Newport, Gwent

£211,332.42 

46.94% 

Salford 

£186,600.89 

44.02% 

Leicester 

£206,755.25 

43.31% 

Merthyr Tydfil 

£129,081.85 

42.70% 

 Alongside average house price increases, the IVA Advice study also investigated drops in value, with the City of Aberdeen seeing the biggest reduction compared to five years ago. In February 2016, the average house price in the city was £195,492, but it has since fallen by 19.88% to £142,874.  Overall out of more than 400 areas included in the analysis, just eight areas had a drop in average house price compared to February 2016.  Five of them were London boroughs: Hammersmith and Fulham, Camden (0.56% decrease), Tower Hamlets (1.03% decrease), Kensington and Chelsea (5.72% decrease), City of London (11.79%). 

The average house price in Hyndburn in Lancashire dropped by 1.6% to £92,173, compared to £93,683 in February 2016. That makes the borough the home of the cheapest average house price in the UK, and alongside Burnley, where the average house price is £95,371, the only places in the UK where the average house costs less than £100,000. 

Across the UK, the average house price in February 2016 was £205,555, while the latest figures stand at £250,340 – an increase of 21.78%.   Comparing the four nations of the UK, Wales has seen the biggest increase in average house price over the past five years – 26% - going from £142,711 in 2016, to £179,860 in 2021.  Scotland has seen the lowest rise, 19.98%, as the average cost of a house in 2016 was £134,625, compared to £161,529 now.